Regardless of your age, you should start thinking about retirement now. You need money
to enjoy your retirement years, and that takes careful planning.

Maintaining your pre-retirement living standard usually requires an income from various
sources. The State of Connecticut understands this and provides you with retirement
benefits through the Connecticut State Employees Retirement System.

The State Employees Retirement System is based on a Connecticut state law enacted in
1939. Since that time, the law has been changed by legislation and collective bargaining.
There are currently three plans - Tier I, Tier II and Tier IIA. In this booklet, we
describe the System's Tier II retirement plan, which is non-contributory for all members
except hazardous duty members.

The Tier II Plan is administered by the State Employees Retirement Commission whose
members are representatives selected by state employees or their unions, management
members appointed by the Governor, and actuaries. The Chair of the Commission is nominated
by Commission members and must be authorized to serve as a neutral arbitrator in labor
relations cases.

We've described the Tier II Plan in summary form in this booklet. Although retirement
plans are by necessity complicated, we have taken care to eliminate legal terms whenever
possible and to use everyday language. Also, you'll find a number of examples throughout
this booklet to help you understand how the Plan works.

Please read this Tier II description carefully. If you have any questions about the
Plan that the booklet does not answer, contact:

TIER II COVERS STATE EMPLOYEES FIRST HIRED FROM JULY 2, 1984
THROUGH JUNE 30, 1997

A Prefatory Note

Over the years, the Tier II retirement plan has been changed in significant
ways. A right to a benefit as well as the amount of a benefit may be determined
on the basis of the plan provisions that are in effect at the time a Tier II
member leaves state employment. This booklet describes the Tier II provisions
revised to January 1, 2000, including major changes that became effective July
1, 1997. If you ceased to be a state employee before July 1, 1997 and have not
resumed state employment since that date, the plan provisions governing your
entitlements may be different from those described in the current summary plan
description booklets.

Eligibility For Tier II

For the most part, this booklet addresses employees hired from July 2, 1984
through June 30, 1997. If you were hired on or before July 1, 1984, whether you
participate in the Tier I or the Tier II Plan depends upon several factors.
Generally, employees hired on or after July 1, 1997 participate in the Tier IIA
Plan. If you are uncertain as to which plan you participate in, please contact
your agency's Personnel or Payroll Office.

If you were first hired into state service on or after July 2 , 1984 but
before July 1, 1997, you were automatically covered under the Tier II Plan as of
your date of employment, unless you were eligible for and elected to participate
in another Connecticut retirement system.

If you were employed by the state on or before July 1, 1984 and were not a
member of any other State of Connecticut retirement plan, the Tier II Plan, with
limited exceptions, also covers you.

Rehired Employees

If you worked for the state as a Tier I member, left your job, then were
rehired on or after July 2, 1984 but before July 1, 1997, Tier II Plan
membership was mandatory as of the date you were rehired unless:

you already earned and retained your right to a vested retirement benefit
from the Tier I Plan due to your prior period(s) of state service (this
means a retirement benefit over and above your own contributions);

you returned to state service after a period during which you were
receiving state retirement benefits, including disability retirement
benefits, from the Tier I Plan;

you were reemployed on or after July 1, 1988, but within five years of
your prior termination as a Tier I member;

you were away for more than five years, but your previous state service as
a Tier I member was longer than the length of time you were away. (For
example, you worked for the state for eight years, left your job, and
returned after a six year absence.)

In these exceptions, you resumed membership in the Tier I Plan.

If you worked for the state as a Tier II member, left your job, then were
rehired before July 1, 1997, you automatically returned to Tier II Plan
membership as of the date you were rehired.

If you worked for the state as a Tier I or Tier II member, left your job,
then were rehired on or after July 1, 1997, Tier IIA Plan membership was
mandatory as of the date you were rehired unless:

you already earned and retained your right to a vested retirement benefit
from the Tier I or Tier II Plan due to your prior period(s) of state service
(this means a retirement benefit over and above your own contributions, if
any);

you returned to state service after a period during which you were
receiving state retirement benefits, including disability retirement
benefits, from the Tier I or Tier II Plan;

the time you were away from state service is less than your prior actual
state service or 5 years, whichever is greater.

In these exceptions, you resumed membership in the Tier I or Tier II Plan
based upon your original membership.

Teachers and Professional Staff

If you are a state teacher or a professional staff member in higher education
as defined by the Connecticut General Statutes, and you were first employed by
the state on or after July 2, 1984 but before July 1, 1997, you are covered
under the Tier II Plan. However, you may have been eligible to elect membership
in either the Connecticut Teachers Retirement System or, if you are in higher
education, the alternate retirement program. If you were eligible to do so, you
must have elected one of the other two retirement plans within six months after
your date of employment, or you automatically became a member of Tier II
retroactive to your date of employment. You can be an active member of only one
state retirement system.

Judges

Judges appointed to the Connecticut Supreme Court, Appellate Court or
Superior Court become members of the Judges, Family Support Magistrates, and
Compensation Commissioners Retirement System.

If you were covered by Tier II before your appointment to the Supreme Court,
Appellate Court or Superior Court and had accrued at least 10 years of credited
service under Tier II, you may elect to remain a member of the Tier II Plan. Or,
if you had withdrawn from Tier II, you may elect to be reinstated as a Tier II
Plan member. You may make either such election any time within 10 years after
your initial appointment as a judge. In determining your Tier II benefit, you
will receive credit for your years of service as a judge.

The State of Connecticut pays the full cost of the Tier II Plan, and you do
not contribute unless you are in a position designated as hazardous duty.
Effective January 12, 1990, hazardous duty members are required to contribute
four percent of all state earnings to the State Employees Retirement System.
Since July 1, 1997, the hazardous duty contributions are made on a pre-tax
basis.

Your Beneficiary

It is important for you to name a retirement beneficiary or beneficiaries to
receive any salaries that may be due if you should die while you are an active
state employee. If you are a hazardous duty member, a refund of your retirement
contributions and interest would also be payable to your named retirement
beneficiary(ies). This designation may be changed any time you wish. To name or
change your retirement beneficiary, contact your agency's Personnel Office for
the proper forms.

As a member of Tier II you will accrue three types of service: actual state,
vesting and credited service. You are "vested" or eligible for
immediate or deferred retirement benefits when you meet specific service
requirements. Actual state and vesting service determine your eligibility for
benefits. Credited service will be used to compute such benefits.

ACTUAL STATE SERVICE

You Earn a Permanent Vested Right to a Benefit After 5 Years
of Actual State Service

Actual state service includes all years and months of state service subject
to permanent break in service rules outlined in the section entitled
"Breaks in Service and Permanent Breaks In Service Rules." Actual
state service begins building up from your employment or reemployment
commencement date. Your employment commencement date is the date you first work
an hour for which you are paid or entitled to pay by the state. Your
reemployment commencement date is the date you return to work after you
terminate state employment and you first work an hour for which you are paid or
entitled to pay. Actual state service continues building all the way to your
severance from service date (the date your state employment ends).

Also counted as actual state service are all periods of time when you
received temporary Workers' Compensation (excluding specific indemnity awards)
or Disability Compensation under Connecticut General Statutes, Section 5-142 and
any unpaid leave on or after June 9, 1994 consisting of individual prescheduled
days or partial days off as provided by the Voluntary Schedule Reduction Program
pursuant to Section 5-248c of the Connecticut General Statutes. Not counted are
periods of absence without pay for other reasons.

You earn one year of actual state service when you work 12 calendar months
for the state. If you are a state teacher and work a full academic year,
equivalent to at least 10 months of service, you will receive credit for the
full calendar year.

After you have 5 years of actual state service, you have earned a permanent
vested right to a benefit.

You Earn a Permanent Vested Right to a Benefit After 10
Years of Vesting Service

Vesting service includes your actual state service. You also earn vesting
service for a period(s) of severance of less than 12 months.

In addition, you may receive vesting service for various types of leaves and
service including the following:

eligible military service

eligible full-time service to other states

leaves of absence without pay for military service, educational purposes
to follow a job-related course of study, or personal medical and family
leaves pursuant to Section 5-248a of the Connecticut General Statutes

eligible prior Connecticut state service not succeeded by a permanent
break

any period between the time you leave state service and return to state
service including periods of severance of less than 12 months.

an approved educational leave of absence to follow a job-related course of
study.

Credited service may include:

any period of your municipal service if you were a member of the
Connecticut Municipal Employees Retirement System, provided you have at
least ten years vesting service under Tier II and have not and will not
receive any retirement allowance from the municipal system for this
municipal service. Refer to the section entitled "General
Information on Obtaining Certain Actual State, Vesting and Credited
Service" for more information.

Special rules apply to hazardous duty members of Tier II who are detectives,
chief inspectors, or inspectors in the Division of Criminal Justice, or chief
detectives in any other division, with respect to former service to a municipal
police department. Please contact your agency's Personnel Office for additional
information.

Breaks In Service And Permanent Breaks In Service Rules

A break in service occurs if you sever your state employment and do
not return to state service within one year. You do not receive any retirement
credit for a break in service.

Suppose you leave your job and are rehired within 12 months, the period
between the time you leave and the time you return will count toward your total
years of vesting service when determining your eligibility to retire. But it
does not count as actual state service and will not be used as credited service
when calculating your retirement benefit amount. If you terminate while on a
leave of absence, you must return to state service within one year after the
first day of your absence to avoid a break in service.

A permanent break in service occurs if:

you are not vested, and

you have had a break in service of more than five years, and

the period from your severance from service date to your reemployment
commencement date equals or exceeds your Tier II vesting service prior to
that severance.

If you have had a permanent break in service, you will not receive any
retirement credit for service preceding the permanent break.

Example: You worked as a Tier II member for four years, left and
were rehired after six years of severance. Since you were gone longer than
five years and more than your total years of prior vesting service, your
service before reemployment will not be counted for any retirement credit.

Alternatively, if you did not have a permanent break in service, your years
of service before and after reemployment are added together after you are
rehired.

Example 1: Let's say you build up three years of service. You leave
state employment and after four years, you are rehired. Since you were gone
less than five years, your years of service before and after reemployment
are added together after you are rehired.

Example 2: Suppose you build up seven years of vesting service, but
do not have five years of actual state service; you leave state employment
and are rehired after six years. Since you were gone less than your prior
vesting service, your years of service before and after reemployment are
added together after you are rehired.

Now, assume you are vested in Tier II when your state employment ends and you
are later rehired. Your years of service, before and after reemployment, are
automatically added together.

General Information On Obtaining
Certain Actual State, Vesting And Credited Service

There are three types of prior service for which Tier II members must apply
to obtain retirement credit. You request such credit on a Form CO-922, entitled
"Retirement Credit - Tier II Members Only", available from your
employing agency's personnel or payroll office. After submission of the
completed Form CO-922 with all required documentation to the Retirement Services Division, you will be sent an acknowledgement of retirement
credit or a letter explaining why you do not qualify.

The three types of service for which a Form CO-922 is required are:

1. Prior service to another state

description: Prior full-time employment with another State
provided that State has similar retirement credit provisions for former
Connecticut state employees. If you received or will receive any benefit,
including a lump-sum payment, for your service to the other State above and
beyond your own retirement contributions and interest, you cannot obtain
retirement credit in Tier II for such service.

documents required: An official statement from the other
State specifying that you were full-time, the actual dates of your service
and the retirement system to which you belonged.

deadline to apply: Any time before retirement.

credit allowed: Vesting and credited service to a maximum of
ten years but no more than one year of out-of-state service allowable for
each two years of Connecticut state employment.

2. Service to a Connecticut municipality

description: Employment with a Connecticut municipality
during which you were a member of the Connecticut Municipal Employees
Retirement System (CMERS), provided you have not and will not receive any
retirement allowance from the municipal system for this municipal service.

documents required: An official statement from the
municipality specifying the actual dates of your service and the portion of
a full-time schedule you worked.

deadline to apply: Any time before retirement.

credit allowed: While you may obtain unlimited credited
service, it does not count until you have completed a minimum ten years of
vesting service, exclusive of the municipal service during which you were a
CMERS member.

3. Prior military service

description: Active duty served during war-time or national
emergency in the United States Army, Navy, Marine Corps, Coast Guard or Air
Force for which you received an Honorable Discharge and for which you are
not and never will be entitled to a pension from another source.

documents required: A DD-214 from the federal government.

deadline to apply: Within one year of the commencement of
your first period of state service or June 21, 1993, whichever is later.

credit allowed: Vesting and credited service for all
war-service plus three years national emergency service to a maximum of ten
years.

Additionally, as a Tier II member you may receive retirement credit for
certain qualifying leaves of absences, provided if you are a hazardous duty
member that you have made required contributions. Those periods that will be
counted for retirement credit without a need for you to complete a Form CO-922
are:

4. Credit for qualifying leaves of absences without pay
taken for personal medical or family leave

description: Leaves that qualify under applicable law,
collective bargaining agreements or other regulations that were granted for
the protection or improvement of your health, including maternity, or
granted for family illness or parental reasons.

agency records required: Upon request from the Retirement Services Division or at retirement, copies of the official
personnel documents approving the leave, reflecting its type and confirming
its duration.

credit allowed: Vesting and credited service in monthly
increments to a maximum of fifteen months of credit in any five year period.

5. Credit for qualifying leaves of absences without pay
taken pursuant to the voluntary schedule reduction program authorized by
Connecticut General Statutes, Section 5- 248c or one of its predecessor
voluntary leave or schedule reduction programs

description: Leaves that qualify under applicable law,
collective bargaining agreements or other regulations that were granted
pursuant to your participation in one of the voluntary leave and/or
voluntary schedule reduction programs.

agency records required: Upon request from the Retirement Services Division or at retirement, copies of the agreements
between you and your agency plus official personnel documents reflecting the
type of leave, and confirming its duration.

credit allowed: For time off taken on or after June 9, 1994
pursuant to Connecticut General Statutes, Section 5-248c, there is no
maximum and said leave counts as actual, vesting and credited service. For
any leave taken under any other officially approved voluntary leave or
schedule reduction program, the credit allowed is limited to vesting and
credited service in monthly increments to a maximum of fifteen months of
credit in any five-year period.

6. Credit for qualifying leaves of absences without pay
taken for military service

description: Leaves without pay taken for active duty in the
United States Army, Navy, Marine Corps, Coast Guard or Air Force provided
the individual returns to state service within ninety days of honorable
release.

documents required: Upon request from the Retirement Services Division or at retirement, a DD-214 from the federal
government plus copies of the official personnel action documents approving
the leave, reflecting its type and confirming its final duration.

credit allowed: Vesting and credited service with no
limitation.

7. Credit for qualifying leaves of absences without pay
taken for educational purposes

description: Leaves without pay taken to pursue a course of
study which is connected with the work of your agency and which is for the
purpose of increasing your proficiency.

documents required: Upon request from the Retirement Services Division or at retirement, copies of the official personnel
documents approving the leave, reflecting its type and confirming its
duration.

credit allowed: Vesting service only up to four years.

Reference Chart for Actual State, Vesting And Credited
Service

The following chart is a quick check reference chart showing varying types of
service and whether each qualifies as actual state, vesting or credited service
in Tier II. Please refer to the preceding section entitled "General
Information on Obtaining Certain Actual State, Vesting and Credited
Service" and contact your agency Personnel or Payroll Officer regarding any
additional statutory requirement which may also need to be met before actual
state, vesting or credited service can be utilized.

TIER II ACTUAL STATE, VESTING AND CREDITED SERVICE

Type of Service
or Absence*

Actual State
Service

Vesting
Service

Credited
Service

Paid state employment provided period is not
succeeded by a permanent break **

Yes

Yes

Yes

Period of qualifying Workers'or Disability
Compensation

Yes

Yes

Yes

Period of severance of less than 12 months

No

Yes

No

Qualifying military leave without pay**

No

Yes

Yes

Personal medical, or family leave without pay granted
pursuant to Section 5-248a or terms of a collective bargaining
agreement**

No

Yes , in calendar months or 22 working day
increments; maximum:15 months in 5-year period

Yes in calendar months or 22 working day
increments; maximum:15 months in 5-year period

Educational leave without pay

No

Yes, maximum 4 years

No

Any other leave without pay

No

No

No

Full-time service to other states where
reciprocity exists

No

Yes, maximum 10 years with 1 to 2 ratio to CT state
service

Yes, maximum 10 years with 1 to 2 ratio to CT state
service

Prior eligible military service

No

Yes, maximum 10 years total: war service plus 3 years
national emergency service

Yes, maximum 10 years total: war service plus
3 years national emergency service

Prior eligible CT municipal service if in CT
Municipal Employees Retirement System (CMERS)

for retirement eligibility purposes, your part-time service will be
treated as if it were full-time service. For example, this means that when
you have completed five years of actual state service or ten years of
vesting service, regardless of your exact schedule, you will be vested for a
retirement benefit.

for retirement income calculation purposes, however, your benefit will be
adjusted to reflect the portion of the standard full-time schedule you
worked throughout your state employment.

Benefit Calculation Factors

Your basic benefit is calculated by using a formula that takes into account
your average salary, your average salary in excess of the year's breakpoint, and
your credited service.

Average Salary

To determine your average salary, use your three highest paid years of
credited service. Any 12 consecutive month period equals one year. For example,
May 1st through the following April 30th equals one year. Add together your
earnings from your three highest paid years, then divide this total by three.

When calculating your average salary, no one year's earnings, commencing
January 1, 1986, can be greater than 130% of the average of the preceding two
years. Mandatory overtime earnings are not subject to this limitation.

Breakpoint

This table shows you the earnings breakpoints through the year 2009.

For The Year:

The Breakpoint Is:

1999

28,900

2000

30,600

2001

32,400

2002

34,300

2003

36,400

2004

38,600

2005

40,900

2006

43,400

2007

46,000

2008

48,800

2009

51,700

For each year after 2009, the breakpoint increases by 6%, rounded to the
nearest $100.

In the benefit formula, you take the breakpoint for the calendar year in
which your last severance from state service occurs.

Minimum Guarantee

If you retire with 25 or more years of vesting service, the Plan provides a
minimum benefit; your basic monthly benefit will equal the result of the formula
calculation or $360, whichever is greater. This benefit will be pro-rated for
members with 25 or more years of service which includes at least some part-time
service.

Your normal retirement date will be the first of any month on or after you
are age 60 if you have at least 25 years of vesting service, age 62 if you have
at least 10 but less than 25 years of vesting service. If you sever your state
service on or after July 1, 1997, your normal retirement date will be the first
of any month on or after you are age 62 if you have at least 5 years of actual
state service.

Age 70 Retirement

You may retire on the first of any month on or following your 70th birthday,
if you have at least five years of vesting service. If you leave state service
with less than five years of vesting service at age 70 or older, no retirement
benefits are payable.

Early Retirement

If you have at least 10 years of vesting service, you can receive retirement
benefits if you retire on the first of any month on or following your 55th
birthday.

Hazardous Duty Retirement

You may retire with a benefit on the first of any month after you have
completed 20 years of credited service while a hazardous duty member.

The time you are away from your hazardous duty job because of an approved
eligible leave of absence, military service or qualifying nonstate employment
may count toward your years of credited service as a hazardous duty member
provided:

you held a hazardous duty job immediately before the absences specified
above;

you return to hazardous duty at the conclusion of any such absence; and

you make all required contributions.

For detectives, chief inspectors or inspectors in the Division of Criminal
Justice or chief detectives in any other division, certain prior service as a
sworn member of a municipal police department, if purchased, can count toward
the twenty year minimum requirement for hazardous duty benefits, under certain
circumstances.

Disability Retirement

If you become permanently disabled and have 10 years of vesting service, you
may be eligible for disability retirement benefits. If your disability is job
related, you may receive benefits regardless of your years of service. Note:
Prior military service cannot be used for eligibility or calculation purposes
for a disability retirement.

Vested Rights Retirement

Your state employment may end before you are eligible for immediate
retirement benefits. You will have earned a permanent vested right to a
retirement benefit if you have at least 5 years of actual state service or 10
years of vesting service at the time you leave. Refer to the section entitled "Vested
Rights Retirement" for information on the age at which you may begin to
receive your benefit.

If you retire on or after August 1, 1997, you are eligible for normal
retirement benefits on the first of any month on which or after you attain:

age 60 with at least 25 years of vesting service,

OR

age 62 with at least ten but less than 25 years of vesting service,

OR

age 62 with at least five years of actual state service.

You may retire with Age 70 retirement benefits on the first of any month on
or following your 70th birthday with at least 5 years of vesting service.

The Benefit Formula

For retirement income calculation purposes, your credited service is used in
the formula.

Your basic annual retirement benefit equals:

one and one-third percent (.0133)

X

average salary

PLUS

one-half of one percent (.005)

X

average salary in excess of the year's breakpoint

TIMES

years of credited service to a maximum
of 35 years

AND

one and five-eighths percent
(.01625)

X

average salary

TIMES

years of credited service over 35 years

Keep in mind your credited service includes fractions of a year, based on
completed months of service. The above chart provides you with your annual
benefit. To determine what your basic monthly benefit will be, divide your
annual retirement by 12.

If you retire in the first six months of the year, your benefit will not be
less than the benefit you would have received had you retired on the previous
December 31st.

An Example

Suppose you retire March 1, 2002 at age 63. Let's assume your average salary
equals $44,500 and you have 10 years of credited service, composed of 8 years of
actual state service and 2 years of credited prior military service.

YOU MAY RETIRE WITH A BENEFIT IF YOU HAVE 10 YEARS OF VESTING
SERVICE AND ARE AT LEAST AGE 55

How Your Benefit is Figured

Your basic early retirement benefit is first figured with the same formula
used for a normal retirement benefit. Your average salary and years of credited
service, as of your early retirement date, are used in the calculations.

Your basic normal benefit amount is then reduced by one-quarter of one
percent (.0025) for each month you retire prior to your attaining age 60 if you
have at least 25 years vesting service, or age 62 if you have at least 10 but
less than 25 years vesting service.

These reductions are required because your benefits are expected to be paid
over a longer time period.

An Example

Suppose you retire effective March 1, 2002 on your 60th birthday with at
least 10 but less than 25 years of vesting service. Let's assume your basic
monthly benefit at normal retirement would be $530.00. This basic benefit would
then be reduced by one quarter of one percent for each month you receive a
benefit before your 62nd birthday, as follows:

your basic monthly normal retirement benefit:

$530.00

Minus

one quarter of one percent (.0025) of $530 X 24

$ 31.80

(24 months before your 62nd birthday)

$498.20

Your basic early retirement benefit at age 60 would be $498.20 per month.

YOU MAY RETIRE WITH A BENEFIT AT ANY AGE IF YOU HAVE 20 YEARS OF
HAZARDOUS DUTY SERVICE

Definition Of Hazardous Duty

You are considered a hazardous duty member if you are an employee working:

in the Division of State Police within the Department of Public Safety as
a State Police Officer;

as a detective, chief inspector, or inspector in the Division of Criminal
Justice, or as a chief detective in any other division;

in guard or instructional duties at any state correctional facility or
institution;

directly and substantially with patients in the Whiting Forensic Institute
Division of the Department of Mental Health and Addiction Services;

in specified firefighting, law enforcement or protective services
classifications;

in any other position included on the Hazardous Duty Appendix.

How Your Benefit Is Figured

If you qualify for a hazardous duty retirement, your basic annual benefit
will be calculated as follows:

50% (.50) for 20 years hazardous duty
service

X

average salary

PLUS

2% (.02)

X

all service over 20 years (which could include
service for state jobs not classified as hazardous duty as well as
other credited service)

X

average salary

To determine what your basic monthly income would be, divide your basic
annual retirement income by 12.

Remember, you must have at least 20 years of credited service as a hazardous
duty member to receive this retirement benefit.

An Example

Let's suppose you are retiring with 23 years of credited service in a
hazardous duty position. Assume your average salary equals $48,000.

Here's how your basic annual benefit is figured:

.50

X

$48,000

=

$24,000

PLUS

.02 X 3

X

$48,000

=

$ 2,880

(service over 20 years)

$26,880 per year

Your basic monthly retirement benefit would be $2,240 ($26,880 ?12).

Special Rules

Hazardous duty members are required to make the appropriate contributions in
order to receive hazardous duty retirement credit for qualifying military leave
without pay and personal medical and family leave granted pursuant to Section
5-248a or the terms of a collective bargaining agreement as well as paid state
employment in a designated hazardous duty classification. Hazardous duty members
who terminate their employment, withdraw their hazardous duty contributions and
are later reemployed in a designated hazardous duty position must restore their
refunded contributions and interest in order to receive hazardous duty
retirement credit for their prior service provided there has not been a
permanent break in service.

Withdrawal Of Hazardous Duty Contributions

If you are not eligible for any retirement benefits when you leave state
service, you may withdraw your hazardous duty retirement contributions. This
withdrawal will include interest at 5% per year credited from the July 1st
following the commencement of contributions to the July 1st coincident with or
preceding the date you leave state service. If you do not withdraw your
contributions and you do not return to state service within five years, we will
assume that you want a refund and a refund application will be sent to you.
After you complete the form and return it to us, we will send you your
contributions and interest. If we cannot locate you within ten years after your
employment ends, your contributions will become part of the retirement fund.

If you leave state service before qualifying for hazardous duty retirement
benefits you may, if eligible to do so, receive early, normal, age 70, or vested
retirement benefits. Your hazardous duty contributions and awarded interest will
be refunded to you following your early, normal, age 70, or vested rights
retirement. Upon written request, terminated vested members may receive a refund
of their contributions and interest before their retirement benefits begin.
Hazardous duty members who retire on disability retirement are not entitled to a
refund of their hazardous duty contributions.

YOU MAY RECEIVE RETIREMENT BENEFITS IF YOU BECOME PERMANENTLY
DISABLED

Definition Of Disability

At first, disabled means you are permanently unable to perform the duties of
your job. After you have received disability benefits for 24 months, you are
considered disabled only if you are totally unable to work at any suitable and
comparable job. Your disability may be service-connected or non
service-connected.

The determination of eligibility for state disability retirement benefits is
made by the Retirement Medical Examining Board. The Board will base its decision
on the pertinent medical evidence you provide. It is important that you submit
the treating physician's narrative reports as well as diagnostic test and
hospital summaries and any other relevant information of ongoing care for the
condition on which your application is based. The Board will conduct a hearing
in connection with your disability retirement application at which oral
testimony may be given. After you have received benefits for 24 months the Board
will conduct another review.

For individualized information you may contact your agency Personnel or
Payroll Officer, or the Retirement Services Division Counseling
Services Unit.

How Your Benefit Is Figured

To be eligible for a non service-connected disability retirement you must
have at least ten years vesting service. There is no minimum service requirement
for a service-connected disability retirement. Please remember that prior
military service cannot be used for eligibility or calculation purposes for a
disability retirement.

If you qualify for a disability retirement, the following formula is used to
compute your basic annual benefit:

one and one-third percent (.0133)

X

average salary

PLUS

one-half of one percent (.005)

X

average salary in excess of the year's breakpoint

TIMES

years of service if you had kept working to age 65 (to a
maximum of 30 years)

OR

actual years of credited service as of your disability

(whichever is greater)

To determine what your basic monthly benefit will be, divide by 12.

An Example

Assume you become disabled in 2005 at age 50. You have 10 years of credited
service and your average salary is $45,000.

Disability Compensation under Section 5-142 of the Connecticut General
Statutes;

outside income from a job.

The total amount you may receive from the first three sources, combined with
your Tier II benefit, cannot be more than 80% of your average salary or 80% of
your salary at the time of disability, if higher.

If your total benefits exceed the 80% maximum, your Tier II benefit will be
reduced. The reduction will be the amount needed to bring the benefit total down
to the 80% maximum.

Suppose you also earn income from a job. In this case, your total income
(from Tier II, Workers' Compensation, Disability Compensation, Social Security
Disability, and the job combined) cannot exceed 100% of your average salary or
100% of your salary at the time of disability, if higher. If your income exceeds
this 100% maximum, your Tier II benefit will be reduced. The reduction will be
the amount needed to bring the total down to the 100% maximum.

The Retirement Commission may approve your job as being rehabilitative; that
is, being helpful to your recovery. If so, your Tier II benefit will not be
reduced based on your salary from that job.

If both the 80% and 100% maximum amounts apply, the formula paying the
smaller benefit will be used.

Guarantee Of Minimum Disability Retirement Benefit

Of note, you should be aware that your combined income including disability
retirement benefits, any Social Security payments, certain Workers' Compensation
payments limited to temporary total and temporary partial payments, and
Disability Compensation benefits under Section 5-142 of the Connecticut General
Statutes cannot be less than sixty percent of your rate of salary at the time
your disability occurred.

Remember, however, that you will always receive the 60% minimum guaranteed
amount if it is higher than the amount provided by the basic formulas or the
maximum benefits described above.

If You Recover

All disability retirement benefits will end if you recover from your
condition before your normal retirement date. You will receive credit for the
period of time you were receiving Tier II disability benefits. The total number
of years including the time you worked and the period you were receiving the
disability benefits is subject to a maximum of 30 years. However, if your
service at time of disability is greater than 30, you will receive credit for
your total years of service before your disability.

Special Note

In the event that the Retirement Medical Examining Board determines that you
are not permanently disabled from performing your job duties, the agency where
you were last actively employed will be required to return you to employment, if
you so choose. This assumes there are no other employment related reasons for
your separation.

YOU BECOME VESTED AFTER 5 YEARS OF ACTUAL STATE SERVICE OR 10
YEARS OF VESTING SERVICE

If You Leave Before Retirement

Your state employment may end before you are eligible for immediate
retirement benefits. You will have earned a permanent vested right to a
retirement benefit if you have at least 5 years of actual state service or 10
years of vesting service at the time you leave.

How Your Benefit Is Figured

If you leave with at least 5 but less than 10 years of actual state service,
and you have not accrued 10 years of vesting service, you may:

Elect to receive your vested benefit on the first of any month on or after
your 65th birthday. Refer to the section entitled "Normal
Retirement" to determine how the benefit will be calculated. Please
note for vested rights retirements, age 65 is considered the
"normal" retirement age if you have between 5 and 10 years of
actual state service

If you leave with at least 10 years of vesting service, you may:

Elect to receive your vested benefit when you reach age 55 - the minimum
retirement age. Then benefits may begin the first of any month on or after
you qualify for retirement. Refer to the section entitled "Early
Retirement" to determine how the benefit will be calculated.

OR

Elect to receive your vested benefit on or after you are eligible for
normal retirement benefits. With 10 or more years of vesting service, age 62
is considered the normal retirement age. Your basic benefit will then be
calculated as explained in the section entitled "Normal
Retirement." You should contact the Retirement Services Division Counseling Unit if you intend to delay benefits beyond the
date you attain the minimum age.

Your benefits will depend on:

the date your retirement benefit will commence;

the amount of credited or actual service you had earned;

the age at which payments commence;

your average salary and the breakpoint for the year of your last
severance, if applicable;

the income payment election (option) you select at retirement (refer to
the section entitled "Benefit
Payment Options" for more information).

You should contact your last employing agency's Personnel Office to request
the preparation of an application for vested rights retirement benefits at time
of termination or shortly thereafter even though the effective date of your
benefits may be years in the future. Your application, accompanied by a
confirmation of active health insurance form and a copy of your birth
certificate, should be directed to the Retirement Services
Division. You should also advise the Retirement Services Division,
in writing, of any address changes that follow your severance from state
service.

When you apply to retire you must elect one of four benefit payment
"options."; You should review your option choices with care and select
the one that will provide you with retirement income in the form best suited to
your personal needs. If you elect to have your retirement benefits paid to
someone else when you die, the recipient would be your contingent annuitant,
commonly referred to as your "optionee."; The optional forms of
payment available are:

Option D - Straight Life Annuity. This option provides you
with the highest monthly benefit for your lifetime. However, all payments
stop at your death.

Option A - 50% Spouse. This option
first provides a reduced monthly benefit to you for life. Then, 50% of that
benefit will continue after your death for the lifetime of your surviving
spouse (contingent annuitant).

Option B - 50% or 100% Survivor. This
option arranges to continue payments after your death to the contingent
annuitant you choose. This contingent annuitant can be any person, including
your spouse. The option provides a reduced monthly benefit to you for life.
After your death, a percentage of that benefit, either 50% or 100%,
whichever you choose, will continue for the lifetime of your contingent
annuitant.

Option C - 10 Year or 20 Year Period Certain.
This option provides a reduced monthly benefit to you for your lifetime with
payments guaranteed from your retirement date for 10 or 20 years (whichever
you choose). If you should die within 10 years (120 payments) or 20 years
(240 payments) from your date of retirement, the remaining payments, in
accordance with your selection, will be made to your contingent annuitant(s).
This is the only option which allows you to name more than one contingent
annuitant, each of whom would share each remaining monthly payment equally.

If you elect a benefit option that will continue an income to a surviving
contingent annuitant, the benefit amount you receive will depend on your age
and, with the exception of Option C, the age of your contingent annuitant. In
the case of Option C, your closest age is the determining factor. The amount is
less than you would receive if benefits were paid to you alone.

Important Information to Consider When Making Your Option
Election

If you have been married for at least one year prior to the commencement of
your retirement benefits, written spousal consent will be required if you do not
provide a lifetime guarantee (50% or 100% option) for that spouse.

Regardless of your option choice or marital status, you must submit proof
and/or attest to your marital status within one year prior to the date your
retirement benefits are to commence. Failure to submit the required waiver and
documentation prior to your effective date of retirement may result in a delay
of retirement income payments. If you retire and have not designated in writing
the benefit payment option you would prefer or have not obtained the consent of
your spouse, your benefit will be paid according to your marital status when
payment begins.

Your benefit payment option cannot be changed after retirement. Therefore, it
is very important that you elect your "option"; following careful
review of all the available choices.

PLEASE NOTE:

If you elect Option D, at the time of your death not only do all pension
payments stop, but health insurance for any dependents you were covering through
the State Employees Retirement System also ends. Those dependents would be
offered the choice of assuming the full (100%) cost of the group health
insurance for a limited period only (currently 3 years). Then all health
insurance benefits available through the state would cease. Reimbursement for
your dependent's Medicare Part B (normal premiums) will also end at your death.

If you elect Option A, B, or C, the state sponsored health coverage and the
payment of any reimbursement of the Medicare Part B normal premiums would be
extended at the time of your death to your designated contingent annuitant(s)
and his or her eligible dependents for as long as the monthly benefit continues
provided that the contingent annuitant and dependents were your dependents or
cohabited with you at the time of your death.

If you should die before you retire, death benefits may be due your
survivors. It is important, therefore, for you to know that state employees can,
in some instances, influence the type and amount of benefits which may be
available to the survivor(s). Should you become seriously ill or injured, or
have a life threatening condition, you or someone on your behalf should contact
the Retirement Services Division Counseling Services Unit as soon
as possible, either directly or through your employing agency.

Spousal Benefits Before You Retire

Your spouse may receive monthly Tier II benefits if you die before
retirement.

Should you die while actively employed or while on an approved leave of
absence, your spouse will receive a monthly benefit if:

you are eligible for normal, age 70, early, or hazardous duty retirement;

OR

you have 25 years of vesting service at any age.

For your spouse to receive benefits, you must have been married for at least
the one year period immediately preceding your death. The agency where you were
employed should be notified of your death as soon as possible.

Your spouse's benefits would begin on the first of the month on or after your
death. Monthly payments would then continue for his or her lifetime. The amount
would equal 50% of the payment you would have received under the Spouse option
had payments started the day of your death. If you had not reached age 55 at the
time of your death, the benefit would be figured as if you were 55.

Spousal Benefits If You Leave With 25 Years Of Vesting
Service

Suppose you leave state employment with 25 years of vesting service and you
die before receiving any retirement benefits. Your spouse will receive
retirement benefits, provided you had been married to each other for at least
the twelve months preceding your death. Benefits would be paid as described
previously in the section entitled "Spousal Benefits Before You
Retire.";

After You Apply For Retirement - But Before Benefits Begin -
The 90 Day Protection Window

Suppose you apply for retirement and select Option B or Option C (refer to
the section entitled "Benefit Payment Options";).
If you die within 90 days after you first elect either one of these options, but
prior to your date of retirement, your contingent annuitant may receive payments
in accordance with your selection. If your death occurs after this 90 day period
and you have not yet retired, or if you die within 90 days after electing Option
D or A but prior to your date of retirement, the benefit paid will be as
described earlier in the subsection entitled "Spousal Benefits Before You
Retire."; Again, both the agency where you were employed and the Retirement Services Division should be immediately notified of your death.

After Retirement Benefits Have Started

If you die after benefits have started, your designated contingent annuitant
or beneficiary will receive any benefits due under the option you chose before
retirement. It is necessary to have the Retirement Services
Division notified of your death as soon as possible, to facilitate the payment
of benefits for your contingent annuitant or beneficiary.

If you are a hazardous duty member, you elect the Straight Life Annuity
option and you die before your contributions and earned interest are depleted,
your designated beneficiary will receive a lump sum benefit equal to the
remaining portion of your contributions and interest.

If you are a hazardous duty member and you provide for an income to continue
to a contingent annuitant for life and that contingent annuitant dies before
your contributions and earned interest are depleted, a similar refund will be
made. If no beneficiary was designated, the lump sum benefit will be paid to the
estate.

Job Related Death

The Tier II Plan may provide a benefit to your family if your death is a
result of a job related injury. Death must not have been caused by an
intentional or careless act on your part. For deaths occurring on and after
January 1, 1998 the following benefits are payable.

If you are survived by a spouse and at least one dependent child under 18
years of age, the Plan pays your husband or wife $100,000. The money will be
paid in equal monthly installments over a period of at least ten years. All
payments to your spouse will end if he or she dies or remarries during this
time. In addition, each dependent child will receive $50 a month until his or
her 18th birthday.

If you are survived by your spouse only, the Plan pays $50,000 to that spouse
in equal monthly installments. Payments will be made over a period of at least
ten years. They will end if your spouse dies or remarries during this period.

Suppose you have no surviving spouse or children, but you leave one or both
parents dependent upon you. In this case, your parent(s) will receive $50,000 in
equal monthly installments over a ten year period. If one parent dies, the other
parent will continue to get the remaining payments. All benefits will end if
both parents die within the ten year period.

AFTER YOU RETIRE YOU MAY RETURN TO EITHER FULL-TIME OR PART-TIME
STATE SERVICE

Reemployment In A Temporary Position

If you are reemployed by the state in a temporary position, you can work no
more than 120 days in any calendar year without impairing your pension rights.
If the temporary position is considered a 7 hour full-time position, you may
work a maximum of 840 hours; if the position is a 7.5 hour full-time position,
you may work 900 hours; if the position is a 7.75 hour full-time position, you
may work 930 hours; and if the position is an 8 hour per day full-time position,
you may work 960 hours in a calendar year.

A retiree reemployed in a state teaching position may work 45.97% of a
full-time teaching schedule without impairing pension rights. This means that a
reemployed State Employees Retirement System (SERS) retiree at a state
university or the University of Connecticut may teach twelve load credits per
calendar year. A reemployed SERS retiree at a state community-technical college
may teach up to fourteen contact hours per calendar year. Reemployed SERS
retirees at institutions which do not operate on a credit basis, such as the
Department of Correction and the state technical high schools, are required to
observe the 120 days per calendar year limitation.

Reemployment In A Permanent Position

If you are reemployed by the state in a permanent position after you have
retired, your pension payments and benefits must cease. It is your
responsibility to notify the Retirement Services Division of your
reemployment. You will resume membership in the Tier II Plan and receive credit
for service during such reemployment. When you next retire, your retirement
benefit will not be less than the amount you were receiving prior to
reemployment.

COST OF LIVING ADJUSTMENT

BENEFITS ARE ADJUSTED TO OFFSET RISING COSTS OF LIVING

You will be eligible for an annual cost of living adjustment after you start
receiving retirement benefits. The first increase will take place on the January
1st or July 1st (whichever comes first) after at least nine full months of
retirement. Future increases will occur on either the January or July
anniversary of your first increase.

The COLA will range from a minimum 2.5% to a maximum of 6% based on a formula
which takes into account a portion of the increase in the Consumer Price Index
for Urban Wage Earners and Clerical Workers (CPI-W) for the 12 months
immediately preceding your COLA anniversary date.

Specifically, the COLA will be determined in accordance with the following
formula:

STATE MEDICAL, DENTAL, AND LIFE INSURANCE MAY CONTINUE AFTER YOU
RETIRE

Health Insurance

When you retire, you may be entitled to group medical coverage for you and
your eligible dependents under a state group medical insurance plan provided you
were eligible for normal, active group health coverage immediately prior to your
termination and you had completed at least 10 years of vesting service or you
transition directly into retirement. If you were not eligible for normal, active
group health coverage immediately prior to your termination but you had
completed 10 years of vesting service in Tier II as of June 30, 1992, you may
also be entitled to group medical coverage for you and your eligible dependents
under a state group medical insurance plan. The state currently pays 100% of the
cost of certain medical plans for you and your eligible dependents; other
medical plans require you to pay part of the premium cost.

If you qualify for the retiree group medical coverage, you may also elect the
group dental insurance for you and your eligible dependents under a state group
dental insurance plan. The state currently pays 20% of the cost of this coverage
for you and your eligible dependents. The balance of the cost (80%) will be
deducted from your monthly retirement check.

If you terminate state employment with vested rights after completing at
least 10 years of vesting service, your retiree coverage under the group medical
and dental insurance plans can begin as early as the month following the
commencement of your retirement benefits. Note: If you leave state service in
vested status with less than 10 years of vesting service you will not be
eligible for retiree health insurance when you qualify for a monthly retirement
benefit.

If you do not elect to continue your state medical coverage at the time you
retire, within certain limits, you will be able to obtain coverage during any
open enrollment period for retirees. You will be notified annually when the next
open enrollment period will take place.

You may be reimbursed by the state for 100% of the basic cost of Medicare
Part B premiums for you and your eligible dependents. Therefore, a copy (not the
original) of the appropriate Medicare card, showing Part B enrollment, should be
sent to the Retirement Services Division.

Life Insurance

When you retire, a portion of your life insurance will be continued with the
state paying the full cost. If you retire with 25 or more years of state
service, you will receive a life insurance policy equal to one-half of the basic
coverage you had immediately before retirement. With less than 25 years of state
service, your coverage will be proportionately reduced based on years of
service. However, with 25 or more years of full-time state service, your life
insurance at retirement will never be less than $10,000.

You may convert any amount up to the full amount of the reduction to a
personal policy of life insurance with the insurer. If you wish to do this, you
must apply within 31 days after your date of retirement.

Special Notes

If you have become permanently and totally disabled, you may remain eligible
for your full amount of basic life insurance coverage. You must be insured and
under age 60 when first disabled. You should contact your agency Personnel or
Payroll Officer to obtain additional information and to request an application
for a waiver of group life insurance premiums to determine if you qualify.

If you terminate state service and you elect to vest your rights or you elect
to defer your retirement benefits to a later date, you will not be eligible to
receive any of the state paid life insurance. You will, however, be eligible to
convert any amount up to the full amount of your life insurance coverage in
effect immediately prior to your termination of state employment, to a personal
life insurance policy with the insurer.

You must contact the Personnel or Payroll Office of your employing agency, in
writing, to request the preparation of your "Application for Retirement
Benefits" and other related retirement forms. You should allow a
reasonable amount of notice time for this process, which is generally considered
to be 2 to 3 months prior to your intended date of retirement. Because of the 90
day protection window explained in the section entitled "Survivor
Benefits," you should not execute your retirement forms prior to 90
days from your targeted retirement date. Your retirement application and all
accompanying documentation must be received by the Retirement Services Division before the effective date of your retirement.

You will need to provide to your agency copies of:

Your birth certificate

Your contingent annuitant's birth certificate, if applicable

If married, your marriage certificate.

You will need to make several elections including:

Income payment election (option)

Choice of Health Services after retirement, if eligible. If you or your
dependent(s) are over the age of 65 and are covered by Medicare Part B, you
should provide a copy of your identification card(s) indicating Medicare
Part B enrollment.

You are required to complete a form entitled "Spouse Waiver of
Monthly Survivor Benefits" attesting to your marital status. If you
have been married for at least one year as of your requested retirement date and
elect an option that, following your death, will not provide your spouse with a
guaranteed lifetime monthly benefit, your spouse must provide written consent,
with proper witness certification, on this waiver form.

If you are making application for a disability retirement, you must provide,
in addition to the aforementioned items, a form entitled "Disability
Retirement Application Medical Report" as completed by your treating
physician, as well as the supporting documentation addressed in the section
entitled "Disability Retirement".

If you would like your retirement benefit check electronically deposited to
your account at your financial institution, you will need to complete with your
financial representative a "Retirement - Direct Deposit Authorization and
Input Form."

Counseling Services

In addition to the Personnel or Payroll Officer at your own agency or
facility, the Office of the State Comptroller provides retirement counseling
services to all state employees through its Retirement Services
Division, located at 55 Elm Street, Hartford, Connecticut 06106 (Telephone:
(860) 702-3490). Appointments must be scheduled in advance.

Federal law operates to impose a limitation on earnings covered for
retirement purposes. For calendar year 2000, the limit is $170,000; this amount
may be adjusted on an annual basis.

Assignment Of Benefits

You may not use your Tier II Plan interests as collateral or security for a
loan.

Reporting And Disclosure

You or your representative have the right to inspect and obtain copies of all
Plan documents. You must pay a reasonable charge for such copies.

You will receive a summary plan description 90 days after you begin work, and
at least once every four years. You will be notified of any substantial Plan
changes within 210 days after their effective date.

Each year you will receive an annual retirement benefits statement with
personalized information.

A Final Note

This booklet is designed to help you understand your retirement benefits. It
summarizes the more important provisions of the Tier II Plan. It is not intended
to give you complete details on all Plan conditions. If there is any conflict in
wording between the law and this booklet, the official wording of the law will
govern.